Biden Economic Adviser Targets Grocery Stores and Food Companies Over Rising Prices
Inflation has become a major concern for voters as the November presidential election draws near. To address this issue, a top economic adviser to President Joe Biden has announced the administration’s intention to target grocery stores and food companies over elevated prices. Lael Brainard, director of President Biden’s National Economic Council, expressed the importance of addressing grocery prices during a news conference at a National Association for Business Economics event in Washington, D.C.
Brainard highlighted the deceptive practices employed by consumer brands, stating that they often raise unit prices while masking it by shrinking packaging. She emphasized the need to call out these practices and utilize the available tools to combat them. Additionally, Brainard urged grocery stores and chains that raised their margins during the height of the pandemic to bring them down.
President Biden himself has also voiced his concerns regarding pricing strategies employed by certain companies. On Super Bowl Sunday, he criticized these companies for engaging in what he referred to as “shrinkflation,” describing it as a rip-off. The president’s job-approval ratings have remained around the 40% mark due to elevated prices, despite positive indicators suggesting a strong U.S. economy. A recent poll revealed that 51% of swing-state voters trust former President Donald Trump, the likely Republican presidential nominee, over Biden when it comes to handling the economy.
Brainard further discussed how Americans can push back against rising prices by changing their spending habits. She acknowledged that people are fed up with high prices and want to see the economy return to normalcy. However, the prices of many everyday items, particularly groceries, have not yet normalized. Brainard suggested that consumers are choosing to shop differently as a response. This shift in consumer behavior should help exert pressure on grocery margins to decrease. Additionally, Brainard assured that the administration will continue to use tools to combat deceptive practices, hidden price increases, and junk fees. President Biden will remain vocal on this issue, advocating for transparency and consumer empowerment.
In response to Biden’s push against deceptive pricing practices, companies like Ticketmaster and Live Nation have pledged to display “upfront all-in pricing.” This move aims to address concerns regarding junk fees. Kroger, a major grocery store chain, has also committed to lowering prices for consumers once its planned merger with Albertsons is finalized.
Despite concerns over inflation, the main U.S. stock gauges, including the DJIA and SPX, were mostly higher on Thursday. Investor anxiety about inflation was alleviated by a positive report on retail sales.
As the November presidential election approaches, addressing rising prices has become a top priority for the Biden administration. By targeting grocery stores and food companies, the administration aims to combat deceptive pricing practices and ensure transparency for consumers. With ongoing efforts to empower consumers and promote fair pricing, the administration hopes to alleviate concerns and regain trust in its handling of the U.S. economy.